Meta settles Cambridge Analytica lawsuit with Australia’s privacy watchdog, to pay $50 million

Meta Platforms, the parent company of Facebook, has agreed to pay 50 million Australian dollars (about $31.85 million) to settle a lawsuit with Australia’s privacy watchdog. The settlement closes an expensive and drawn-out legal saga over the infamous Cambridge Analytica scandal, marking another chapter in Meta’s global reckoning for mishandling user data.

The case, brought forward by the Office of the Australian Information Commissioner (OAIC), alleged that personal data of more than 300,000 Australians was improperly accessed via a third-party personality quiz app, This Is Your Digital Life. The data was then shared without consent, eventually ending up in the hands of Cambridge Analytica, a political consulting firm that made headlines worldwide.

The bigger picture of data misuse

The Cambridge Analytica scandal first surfaced in 2018 when it was revealed that Facebook user data had been harvested and misused for political purposes. The consulting firm allegedly used this data to influence political campaigns, including Donald Trump’s 2016 US presidential election and the Brexit referendum in the UK.

Australia’s privacy regulator took Meta to court in 2020, accusing the tech giant of failing to safeguard users’ personal information. The case dragged on for years, with a significant victory for the OAIC in March 2023 when Australia’s High Court rejected Meta’s appeal attempt, allowing the lawsuit to proceed. By June 2023, the federal court ordered both parties to enter mediation, eventually leading to this settlement.

More from Tech

What the Zuck? Why Mark Zuckerberg’s neighbours are angry with him Musk’s Grok broke X rules? Reports say AI chatbot briefly suspended by microblogging site

A message to tech giants

The outcome serves as a strong signal to tech giants about growing global scrutiny over data practices. The OAIC argued that Meta had allowed Facebook users’ data to be accessed for purposes they hadn’t consented to — primarily targeted political advertising. The regulator maintained that stricter accountability was essential to protect user privacy in an increasingly digital age.

While Meta denies any wrongdoing, the settlement highlights the company’s ongoing struggles to rebuild trust and prove it can handle user data responsibly. This case also aligns with similar legal challenges Meta has faced worldwide, where regulators in the US and UK issued fines and settlements in 2019.

What it means for the future

Australia’s legal victory reinforces the call for stronger privacy protections and regulations to keep tech giants in check. It may also embolden other regulators globally to take action against companies that fail to respect user privacy. For Meta, the settlement is a financial hit, but the larger challenge remains: regaining user trust and ensuring such breaches don’t happen again.

As the dust settles on this case, it’s clear that the Cambridge Analytica scandal will continue to serve as a cautionary tale for tech companies everywhere — proving that mishandling personal data comes with steep consequences.